Innovation and Commercialization: Concept, Types, and 4 Ps

Concept of innovation compared to invention
Meaning
Invention means the existence of an idea that
comprises of manufacturing a product or service which
has never been made before. As compared to this,
innovation refers to bringing a change in a product or
service for the very first time (Wang, Phillips and Yang,
2021). Therefore, while invention is creating a new
product innovation is related to adding value to the
existing product or service and bringing a change in it.
For example, introduction of iPhone series by Apple is
an innovation.
Definition
Invention is defined as the art which deals with
creation, designing and discovery of a process which has
never existed before. As compared to this, innovation is
defined as a change which is aimed at adding value to
the existing products for fulfilling the needs of the
customers. It is concerned with the introduction of a new
product in a way which is more effective in meeting the
needs of the customers. For example, Google is an
excellent example of innovation as it also aims to adopt
change which provide a better online experience to the
customers. In contrast to this, BrainBox AI is an
invention which helps in predicting the thermal
conditions of the building by using data from weather
forecasts.
Concept
The concept of invention is rooted in the original idea
followed by implementation in the theoretical aspects.
As compared to this, innovation refers to practical
implementation of the novel idea.
Skills required
Invention requires scientific skills as it is related
to discovery of an entirely new concept. As compared
to this, innovation requires a collection of strategic,
marketing as well as technical skills as the new idea
needs to be implemented practically (Kim and Bae,
2021).
Occurrence
The occurrence of invention takes place when a
completely now idea strikes. As compared to this,
innovation occurs when an organization feels the need
to improve an already existing service or product.
Process
Invention is concerned with a single process or
product. As compared to this, innovation is concerned
with a numbe4 of processes and products that work in
combination.
Activities
When invention takes place, it mainly involves
research and development activities. As compared to
this, innovation deals with the various activities which
are spread across the organization.
Innovations and commercialization
Appraising two types and 4 Ps of innovation
Sources of innovation
There are various sources of innovation such as industry and
market changes, process needs and demographic changes.
There are various changes in the market such as change in
the needs and preferences of consumers and their behaviour.
These changes act as a source of innovation. Sometimes the
manufacturing and production processes also need
amendment which leads to an innovation within the
organization. Demographic changes such as increase or
decrease in the income of people, change in the age and
education level of the population further generate the need
for adopting innovation. All these act as sources which
generate the need of innovation within a business.
Culture of innovation
 Organizations can foster and develop a culture of
innovation by motivating and inspiring the employee
to adopt innovation in their day- to – day activities.
 The culture can also be developed by providing the
necessary tools, skills and information to the
employees.
Types of innovation
Incremental innovation
These constitute those improvements which take
place in a gradual and continuous manner. Incremental
innovation is concerned with providing a better version of
the product as compared to its previous version. This type of
innovation is characterized by the presence of a slight
variation in the already existing product which makes it
easier to use as well as more attractive for the consumers.
However, the core functionality of the product is not
changed in this type of innovation (Cheah and Yuen-Ping,
2021). Therefore, this is the constant improvement which is
brought about in the product or service that makes it more
efficient. However, it can be critically appraised that
incremental innovations are not useful for the organizations
in creating new markets. Also, these do not leverage any new
technology. But, these are advantages in terms of attracting
customers who are higher paying.
This is because, the focus of the
organizations is on optimizing their current
offering rather than creating a new value
network.
For example, this type of innovation
can be suitable for organizations like Tesla,
that have capabilities which are different
from the traditional car manufacturers.
Netflix is another example that depicts
disruptive innovation. It introduced a mail-
in movie subscription service. This did not
attract mainstream customers but those who
were early adopters and were in a habit of
online shopping.
4 Ps of innovation
 Product- In this type of innovation,
the products and services offered by
an organization are changed. This
comprises of change in design of
existing product or changing the
entire product. Product innovation
provides the advantage to
organizations as it enables them to
create new spaces and satisfy the
customers by adopting a refreshing
approach.
 Paradigm- Paradigm innovation refers to
the shifting of the mental model by
bringing a change in the status quo (Kim
and Bae, 2021). For example, smart
phones and iPhones are an example of
paradigm innovation as they change the
way in which customers absorbed
information. While earlier the information
was obtained from newspaper, TV etc.,
the advent of smart phones and iphones
made consumers switch to using data via
their phones.
 Process- This is concerned with change in
the process of production of goods and
services. Based on the market changes,
redesigning of the production processes is
done. Process innovation consists of
various innovations that allow
organizations to align their processes in a
way that is customer oriented. This
innovation proves advantageous to the
organizations as it allows them to adapt to
changes in the business environment
quickly.
For example, organizations manufacturing
Televisions and phones implement incremental
innovation. Through these, they are able to provide better
versions of smart phones and TVs by bringing gradual
improvements in the products. These improvements are
catered to meeting the needs of the customers. However, a
disadvantage of the incremental innovation is that these
do not possess the power of making a huge impact on the
market before the new versions of the products are just
slightly better than the previous ones. Another risk
associated with incremental innovation is that as the
market is constantly changing, relying solely on
incremental innovation may prove to be dangerous for the
organization (Sutopo, Astuti and Suryandari, 2019).
Disruptive innovation
This is concerned with a product or a service
which creates a new value network for the organization.
This happens as the organization either enters an existing
market or creates an entirely new market. It can be
appraised that these innovations initially provide lower
performance. However, disruptive innovation has the
capability of converting non customers into customers.
But, disruptive innovation seems to be difficult to most of
the organizations as they do not successfully adjust to the
new competition.